Proposed edits to the draft criteria report, "Understanding Universal
BCAR," include asset risk charges that can vary by country, a change in
the discount rate assumption used to present value non-life loss and
loss-adjustment expense reserves from 5% to 4% and a description of
typical items that are included in off balance sheet risk.

The draft criteria report, "Understanding BCAR for Property/Casualty
Insurers," includes changes to reflect the annual update to growth
charges and the inclusionof pension plans and other post-employment
benefit plans as additional off balance sheet items in the business risk
component. In addition, the discount rate used to present value loss and
loss adjustment reserves was changed from 5% to 4%, and the treatment of
foreign investments was included.

The draft criteria report, "Understanding BCAR for Canadian
Property/Casualty Insurers," includes the potential for higher asset
risk charges for foreign investments, a change in the discount rate
assumption used to present value loss and loss adjustment expense
reserves from 5% to 4% and a description of typical items that are
included in off balance sheet risk.

These updates are part of A.M. Best's continual review of its rating
methodology and are not expected to affect the vast majority of A.M.
Best's ratings.